This Week in Stablecoins: Revolut, BitGo, USDC on Sui, and More
Revolut Plans U.S. Dollar-Backed Stablecoin, Eyes Regulatory Approval
Revolut, a global neobank and fintech company, is poised to introduce a U.S. dollar-backed stablecoin as part of its strategy to expand cryptocurrency offerings and meet the rising demand for stable digital assets. Emphasizing a "compliance-first" approach, Revolut aims to adhere to stringent regulatory requirements across various jurisdictions to provide a secure and trusted option for users.
With the stablecoin market reaching a two-year high and surpassing $164 billion in market capitalization, Revolut's entrance, along with other key players like PayPal and Ripple, reflects the growing competition in the crowded stablecoin ecosystem. While a specific launch date is yet to be announced, regulatory approval remains a necessary step before the stablecoin becomes available to consumers.
Circle Launches USDC on Sui Blockchain, Expands to Brazil and Mexico
This week, Circle announced that USDC would launch on the Sui blockchain, marking its 15th network integration. Sui, a Layer 1 blockchain built for decentralized apps, benefits from the technology developed for Facebook’s failed Libra project. Circle's Cross-Chain Transfer Protocol allows for seamless USDC transfers across multiple blockchains.
Additionally, Circle announced an expansion to Ethereum's Layer 2 Soneium, a joint venture by Sony and Startale Labs. Circle has also expanded the availability of its USDC stablecoin in Brazil and Mexico, enabling businesses to directly access it through national payment systems like Pix in Brazil and SPEI in Mexico.
BitGo to Launch USDS Stablecoin, Offering 98% Liquidity Rewards
BitGo is set to revolutionize the stablecoin market by launching USDS in Q1 2025. This 1:1 USD-backed stablecoin will offer rewards to liquidity providers, challenging major players like USDT and USDC. Designed for transparency, USDS rewards up to 98% to participants, ensures regulatory compliance, and is backed by T-bills and cash for low risk.
BitGo aims to create a fairer ecosystem by incentivizing contributions, surpassing traditional stablecoins in distribution rewards and global access. Their innovative approach promotes growth, innovation, and inclusivity, setting a new standard in the stablecoin landscape.
CEX.io and MoneyGram Streamline USDC Cash Services With Stellar Integration
CEX.io's integration of MoneyGram and the Stellar blockchain enhances users' access to crypto cash-in and cash-out services through USDC. Initially focusing on the EEA, Africa, LATAM, and other regions, users can fund accounts with physical cash in select countries. Stellar's swift and cost-effective transactions enable fiat-to-USDC and USDC-to-fiat conversions at MoneyGram locations.
The collaboration aims to streamline management of crypto and cash, offering a versatile range of payment methods. Additionally, the introduction of a euro-backed stablecoin, EURT, on the Stellar network complies with the EU's MiCA framework, further solidifying the partnership's impact and regulatory alignment.
BNB Chain Enables Gas-Free Stablecoin Transfers, Boosting Mainstream Adoption
BNB Chain is enhancing stablecoin payments by offering faster, cheaper, and more accessible transactions through gas-free transfers with major CEXs, wallets, and bridges. Partnerships with key payment firms enable seamless USDT, USDC, and FDUSD transfers. Collaborations with leading exchanges like Binance CEX and innovative solutions like MegaFuel aim to maximize user savings. Integration with wallet providers and bridge services enhances liquidity and interoperability.
The upcoming "Gasless Carnival Season" promises fee-free withdrawals, covered gas fees for transfers, and zero-cost cross-chain transactions, solidifying BNB Chain's commitment to bridging Web2 and Web3 while making crypto transactions mainstream.
TON and Curve Finance Team Up to Launch Stablecoin Swap Project
The TON Foundation and Curve Finance have partnered to incubate a TON network-based stablecoin swap project, which aims to enhance stablecoin trading on the TON blockchain. Leveraging Curve’s constant-function market maker (CFMM) technology, the collaboration aims to simplify stablecoin swaps, enhance user experience, and minimize price impact. USDT on TON has reached almost $730 million in net circulation within four months of its launch.
The initiative will meet the growing demand for stablecoins, boost liquidity, and advance the adoption of TON’s Web3 ecosystem, with both organizations selecting an independent team to lead the project transparently. Michael Egorov, founder of Curve Finance, will advise the selected team.
TrueX Exchange Debuts With Stablecoin Trading, Sets PYUSD as Default
TrueX, a new crypto exchange launched by former Coinbase and Goldman Sachs executives, focuses on stablecoin-centric trading and settlement. With a goal to offer a stable and predictable trading environment, TrueX aims to minimize slippage between various stablecoins and bridge the gap between fiat and crypto. It sets PayPal's PYUSD as the default settlement currency and plans to expand support to other stablecoins in the future.
TrueX has secured $9 million in seed funding from prominent entities in the crypto space and will initially focus on spot trading of select assets, targeting institutional traders. Additionally, the platform will feature a liquidity program to attract market makers and takers at launch.
Monerium Launches EURe on Noble Blockchain, Enabling Instant Euro Transfers
Monerium's launch of EURe, the first euro-backed stablecoin on the Noble blockchain within the Cosmos ecosystem, signifies a significant advancement in the digital asset space. Backed by euro-denominated deposits and SEPA integration, EURe allows instant euro transfers between on-chain and custodial bank accounts.
Monerium's compliance with EU regulations and authorization as the first Electronic Money Institution to issue e-money on blockchains underscores its commitment to regulatory standards. Noble, serving as the native asset issuance network for prominent stablecoins like USDC, boasts impressive metrics, with $280 million in total assets and facilitating over $3 billion in IBC transfer volume since its 2023 inception.
Stablecoins Gain Systemic Importance, Expand Non-Crypto Use
Stablecoins, such as Tether (USDT) and Circle (USDC), have reached a level of systemic importance, becoming the 18th largest holders of U.S. treasuries alongside sovereign nations. Their monthly onchain payment volume has tripled to $1.4 trillion, accounting for about 50% of all onchain transaction volumes. The monthly active users are at highs of around 22 million, while the total stablecoin wallets with non-zero balances currently stand at 120 million.
Stablecoins are increasingly being held for non-crypto use cases, with younger demographics holding a greater proportion of their assets in stablecoins, seeing them as a better yield opportunity compared to U.S. dollar bank accounts.
Societe Generale's Crypto Unit Shifts Euro Stablecoin to Solana
SG Forge, a subsidiary of Societe Generale, has decided to launch the EUR CoinVertible (EURCV) stablecoin on the Solana blockchain after encountering lackluster performance on Ethereum. Launched on Ethereum last year, the Euro-centric stablecoin has struggled to gain traction, with only 28 holders, 154 lifetime transactions, and an issuance of €33 million.
The move to Solana aims to leverage the network's speed and cost-effectiveness, as CEO Jean-Marc Stenger highlighted that Solana's speed holds the potential to unlock new opportunities for retail and institutional players in decentralized finance (DeFi). This transition will test the market's appetite for Euro-linked stablecoins on a faster and cheaper network, amid the rising importance of stablecoins in the global financial economy.
This article has been refined and enhanced by ChatGPT.
